Ripple price in an uptrend, trading below 34 centsRegulatory clarity will clear the air catalyzing adoptionAverage transaction volumes are high, doubles in last monthEven though Ripple related news is scarce, increasing participation levels point to an accumulation. To that end, we expect today’s double bar bull reversal pattern off 30 cents to act as a base for further higher highs in coming days.Ripple Price AnalysisFundamentalsProgress is visible. They may be baby steps, but still, it is a step in the right direction. Of the more than 15,000 banks, 200 banks use the Ripple Net. What’s more? 13 out of these 200 banks leverage xRapid, a Ripple Inc option that leverages XRP as liquidity apparatus.To the ordinary, this is miniscule incomparable to the behemoth in SWIFT. The banker’s network has more than 10,000 banks, is dominant and Ripple has a long way before they become the leading trusted player.However, as an upcoming start-up, ranked one of the best to work for, their solution promise speed, efficiency and cost savings. It’s just about everything businesses—including banks, need at these trying times. As a result, we expect Ripple to onboard more banks and processors keen on being a step ahead of competitors once there is regulatory clarity.Recent listing at CoinBase may boost our confidence that XRP is a utility. However, all cards lie with the US regulator or an agent of the commission. Their comment will clear the air leading to an influx that will undoubtedly push XRP prices higher.Candlestick ArrangementsIn a determined trend, every low should be a buying opportunity. However, unless otherwise bulls build momentum and drive prices above key resistance levels, then we shall maintain a neutral but bullish outlook regardless of our forecast.From our chart, and as mentioned in previous XRP/USD analysis, 34 cents—the 61.8 percent Fibonacci retracement level of Dec 2018 high low is our next buy trigger line. It is after prices break and close above this 4 cents consolidation that XRP stands to rally with first modest targets at 40 cents.Breakouts will be consequential and will open the doors for 60 cents and later 80 cents as bulls take charge. Candlestick arrangement point to bulls and in line with surges of Feb 25, odds are north is the path of least resistance.Technical IndicatorsVolumes reveal liquidity and demand. In the daily chart, Feb 24 bear bar stands out. It has high trade volumes—61 million against averages of 28 million. Because of today’s double bar bull reversal pattern, any bar that drives prices above 34 cents must be at the back of high trading volumes—above 28 million and even 61 million.
Archives for March 5, 2019
TrueUSD celebrated its first birthday on Tuesday, and the $200 million USD-pegged cryptocurrency stablecoin commemorated the occasion with two major announcements that could help buttress it as it seeks to supplant $2 billion Tether (USDT) as the market’s leading stablecoin.
Stablecoin to Provide Real-Time Accounting
First, TrueUSD unveiled a partnership with Armanino, one of the 25 largest independent accounting firms in the US. The result for TUSD users is real-time transparency of the global supply of the stablecoin. The feature will be available in April. Rather than a monthly or quarterly report, as is common in stablecoins these days, users can find out the status of the TrueUSD market in one convenient location.
Armanino’s Noah Buxton, Director of Risk Assurance, said:
“We believe continuous assurance and audit is no longer a far-off future, but rather an imminent reality.”
To make the accounting tool possible, TrueUSD gives Armanino access to its bank accounts and blockchain interface. Users will be able to see the assets held in collateral by TrustToken, as well as the scope of balances across the network. A lot of work would be required by a user to do the same on virtually any other stablecoin, but TrustToken’s edge is building trust through transparency.
Automatic Stablecoin Redemption: The New Crypto Standard?
Perhaps more interesting for traders, TrustToken has launched a unique feature. After verification, any TrueUSD user can send a minimum of 1,000 TUSD to their redemption address. They then receive an automatic wire to their registered bank account.
You have to think about it in terms of crypto exchanges like Binance, which has no actual fiat withdrawal options. You can make all kinds of money on Binance, but then you’ve got to go through a process to get it into cash. If you’re a verified TrueUSD user, however, you simply place a withdrawal of TUSD to your redemption address, and the cash will be in your account as soon as banks allow. This feature is currently unavailable with other stablecoins.
The minimum is new, as well. Formerly $10,000 worth of TUSD, the minimum for both purchase and redemption has dropped by 90%. The limits are both still higher than some of the alternatives, though.
TrueUSD Boasts Large Trading Volumes at First Birthday
Big thanks to #TrueUSD traders everywhere! TrueUSD is the most popular regulated stablecoin on #Binance, accounting for 50% of regulated #stablecoin volume this week. Thanks to @cz_binance and the @binance team for putting traders first with great stablecoin trading options! pic.twitter.com/cRD5yfbGJy
— TrustToken (@TrustToken) February 20, 2019
TUSD turned one this week. In the 24-hour period, it had a $226 million usage (trading volume) with a market capitalization of $200 million. It is only the first asset that creator TrustToken plans to offer on the blockchain. In the future, TrustToken intends to tokenize many things, including real estate and other valuable assets.
TUSD is generally reported on less than other stablecoins, but that might be a good thing considering the market. A stablecoin isn’t something you want a lot of news about: you want it to do its job. Quietly.
The last time we heard from the TrustToken team, they drastically reduced the cost of moving TrueUSD (and many other assets) through a feature in Ethereum smart contracts.
Bitcoin price up 3.6 percent, finding support from breakout levelsJack Dorsey is accumulating BTC, buys $10k worth every weekCurrent transaction levels low but up from early Feb 2019High net-worth individuals, it seems, are ramping up at current spot levels. Down 75 percent from 2017 highs, Bitcoin is available at a discount. As interest pick up, the resulting demand could push prices above $4,500.Bitcoin Price AnalysisFundamentalsLike every new tech, trailblazing luminaries are often early adopters. It may be ten years since Satoshi Nakamoto rolled out Bitcoin. As China and the US try to reach consensus on what to concede as part of their agreement, Jack Dorsey, the CEO of both Twitter and Square—multi-billion-dollar firm, is once again showing the world his unwavering support for Bitcoin.He’s not only talking about it but sinking money, partaking in infrastructure development necessary to take Bitcoin to the next level. Although there are no official comments from Twitter on whether the social media platform will make Tippin.me an inbuilt feature in the near feature, what we do know is that Jack is accumulating and confidence of price.NewsBTC reported that the tech leader is funneling $10,000 every week buying Bitcoin at current discount levels.Candlestick ArrangementAt spot rates, Bitcoin is up 3.6 percent from yesterday’s close. If anything, this is bullish and cements our long-standing view that Bitcoin (BTC) is technically bullish, only recessing in the last few days.Even so, risk-averse traders ought to be in the sidelines until after prices rally above $4,500. Supporting and confirming this outlook should be a spike in market participation levels. Preferably, the first leg up confirming bulls of Feb 24 should completely engulf and reverse losses of Feb 24.Generally, Bitcoin is moving within a consolidation, and as long as the aggressive type of traders can buy on dips, we should note that $3,800 is reliable support.On top of that, price action is trading within a bullish breakout pattern with floors at $3,800 and a $1000 range with conservative buy triggers at Dec 2018 highs of $4,500.Technical IndicatorsOur Bitcoin (BTC) analysis anchors on Feb 18 and Feb 24 bars. They counter each other with equally high transaction volumes. Since we are in an uptrend, trend resumption will only print out once prices rally reversing Feb 24 bears. Accompanying this upswing should be high transaction volumes registering above 40k.
A Canadian judge has granted troubled exchange QuadrigaCX a bit more breathing room as it searches for nearly $140 million in missing cryptocurrencies.
Judge Michael Wood, of the Nova Scotia Supreme Court, said he was satisfied that a stay of proceedings first granted a month ago should be extended by just under 45 days, with the next hearing scheduled for April 18. Creditors cannot sue the exchange until the stay expires or is lifted.
Appearing in court Tuesday, attorneys for Quadriga explained that the company was making progress.
“We owe it to everyone in the process to go on as long as is reasonable,” said Maurice Chiasson of Canadian law firm Stewart McKelvey. Chiasson has been representing Quadriga since the company filed for creditor protection at the end of January.
Elizabeth Pillon of Stikeman Elliott, representing Quadriga’s court-appointed monitor Ernst & Young (EY), added that the companies are currently in the “data recovery, asset recovery” phase, and needed some “breathing room” to continue their efforts.
Wood also approved the appointment of a chief restructuring officer (CRO), an individual who would manage the exchange and related companies while working with EY in recovering the funds that Quadriga owes customers.
Chiasson explained that Jennifer Robertson, the widow of Quadriga founder and CEO Gerald Cotten, did not have much experience running a cryptocurrency-focused company, did not want the notoriety that her position has brought her and may also have a conflict of interest as the executor of Cotten’s estate.
Chiasson told the court:
“There needs to be a bit of separation here.”
Wood expressed some concerns about the potential cost to creditors, particularly if the CRO duplicated work that EY already conducted.
However, EY, Quadriga and the judge came to a compromise, where the CRO would only conduct work at the direction of EY, preventing any such duplication and keeping costs low.
Further, the CRO to be appointed – Peter Wedlake, a senior vice president at Grant Thornton – will bill at an hourly rate, rather than charge a much higher monthly fee.
Wood granted an order compelling Amazon Web Services, which reportedly has Quadriga platform data in an account created by Cotten, to turn over any such data.
During the hearing, an attorney for EY explained that Amazon was not opposed to doing so, but could not do so without the court order as Cotten did create a personal account, rather than a business one.
The judge also hopes to speak with payment processors which have yet to turn over any funds belonging to Quadriga to either the exchange or EY. While he said some firms may have to appear in court in-person, for the moment he said speaking to representatives of each processor via telephone would be acceptable.
He deferred any order on repaying Robertson the $300,000 CAD ($225,000 USD) that she initially paid into the CCAA process.
Separately, attorneys with Miller Thomson and Cox & Palmer, the court-appointed representative counsel, updated Wood on their efforts to organize the exchange’s creditors.
To date, 800 individuals have reached out directly to the law firms, said Gavin MacDonald, of Cox & Palmer. Of these, 58 have expressed interest in becoming part of the steering committee, a group of creditors who would effectively direct the representative counsel.
The law firms are in the process of interviewing the applicants and plan to have a committee selected by the end of next week. Should EY agree to the members, Wood said he would approve the committee.
End of the line?
While Wood did approve the appointment of a CRO, he noted that the title is at best symbolic, and the officer’s mandate puts him into more of a manager-type role rather than a turnaround artist.
Other aspects of Quadriga’s case are also different from a typical company restructuring, he noted.
Chiasson mentioned the possibility that Quadriga would sell its trading platform a number of times, though this possibility is still in the distant future.
It may become necessary to change from a creditor protection proceeding under the CCAA, which Quadriga originally filed for, to something more akin to bankruptcy, Wood added, concluding:
“This isn’t so much a restructuring as it is a claims process and liquidation … it does look like an end process.”
Judge Michael Wood image via Nova Scotia Supreme Court
Billionaire Eugene Kaspersky says bitcoin is a brilliant innovation, but the world is not ready for cryptocurrency just yet. However, the CEO of Russian cybersecurity firm Kaspersky Lab believes that will change — in 100 years.
Kaspersky made the remarks in an interview with Arabian Business, during which he denied reports that his Moscow cybersecurity company develops spying technology for Russian intelligence.
Bitcoin Adoption Requires New World Order
Kaspersky says he believes that digital currencies will eventually overtake paper money in the future. However, he thinks that will require a new world order, where there’s a single government instead of the many different nation-states that we have today.
“Cryptocurrencies are a great idea, but the world is not ready for them yet. The world must be united if we want to have encrypted currencies. At the moment, governments will want to control them.”
Crypto Can’t Replace Current Financial System
Moreover, Kaspersky believes it could take another century for mass crypto adoption. And then even, the Russian mathematician does not believe that bitcoin will replace the entrenched legacy financial system that’s in place today.
“In the future — perhaps in 100 years’ time — all the world’s governments will be one government. States will unite under the (Government of the Earth). And only then we will have one currency. Some other currencies may be available, but on a global scale, the currency will be unified.”
“In the future, the currencies will be digital rather than paper. Today’s digital currencies, such as bitcoin, cannot replace the current financial system.”
“But some of the ideas and techniques on which these currencies are based can be used in the future currency with little modification, leveraging blockchain technology.”
Crypto is an Existential Threat to Central Banks
With this latest remarks, Eugene Kaspersky was doubling-down on similar comments he made back in 2015. At the time, Kaspersky praised cryptocurrencies as a remarkable innovation.
However, he warned that governments would try to ban crypto if it gets too popular because virtual currencies are an existential threat to governments and central banks.
“I am beyond certain that different countries will try to forbid the use of cryptocurrencies, because they are beyond their control. Authorities will not pay attention, as long as [cryptocurrencies] do not pose a threat. When they start supplanting national currencies, they will be banned immediately.”
Jack Dorsey: Crypto Will Unite the World
Kaspersky’s pessimistic timetable and outlook for bitcoin’s future is a stark contrast to that of billionaire Jack Dorsey.
Dorsey is a bitcoin bull who’s the CEO of social media network Twitter and mobile payments company Square.
In a podcast this week, Dorsey reaffirmed his optimism that the world will ultimately have a single currency, and it will most likely be bitcoin. Dorsey says that’s the “exciting” direction the future is naturally moving toward.
Jack Dorsey: ‘Beautiful’ Whitepaper Hooked Me on Bitcoin https://t.co/agqB0oqkOC
— CCN.com (@CCNMarkets) March 4, 2019
Dorsey: I Want to Usher in the Bitcoin Revolution
Unlike Eugene Kaspersky, Jack Dorsey does not believe that mass bitcoin adoption requires the abolition of the nation-state.
If anything, Dorsey says crypto will unite all the different countries of the world because it will be used as the single currency. Dorsey previously said that he believes the world will have a single global currency within the next decade.
“[The internet] will want to have a native currency, or a currency that’s effectively global and exists on its own territory instead of through the territories of the various nation-states that we have today. I can’t think of anything more exciting than that.”
“I want to help make it happen. That’s why getting more into bitcoin and cryptocurrency was so interesting for us.”
As QuadrigaCX’s legal counsel descends on the courtroom in Halifax, Nova Scotia, for another round of legal proceedings, the court monitor’s third report on QuadrigaCX’s finances — specifically its revelation that the exchange’s cold wallets are empty — lays out some hopeful avenues for fund recovery — and some frustrating dead ends.
QuandrigaCX has been entrenched in a solvency scandal ever since its founder’s untimely death in December of 2018. Gerald Cotten passed away while honeymooning with his wife, Jennifer Robertson. According to his widow and his company, he died with the sole knowledge of the exchange’s cold storage private keys and seed phrases. The exchange filed for creditor protection on February 5, 2019.
Ernst & Young (EY) was appointed as monitor over the case, and it’s now saying that the long sought-after funds in QuadrigaCX’s elusive cold wallets aren’t there. The wallets are empty and have been for almost a year, the accounting firm writes in its third report for the Nova Scotia court. It also reports that it has secured some $25 million CAD in customer funds from QuadrigaCX’s payment processing partners. It also revealed that QuadrigaCX had 14 accounts open on various exchanges, that these exchanges hold some of the previously inaccessible funds and that most, if not all, of these accounts were opened under alias identities.
And if that weren’t enough to chew on going into today’s hearing, Kraken CEO Jesse Powell told Fortune and Forbes that he has been contacted by the Royal Canadian Mounted Police (RCMP) and FBI about the situation.
Cold Wallets Give the Cold Shoulder
The most salient (if disheartening) finding in EY’s third report is the apparent emptiness of QuadrigaCX’s cold storage. More salient still is how long they’ve been empty.
Upon review by the monitor, the following addresses have been identified as QuadrigaCX’s former cold storage:
EY gave no addresses for cold wallets compatible with any of the exchange’s other major cryptocurrencies, like ether and litecoin, though it mentioned that it is investigating three other potential cold wallets which may be related to the exchange.
Of the Bitcoin wallets provided, five have been empty and inactive since April 2018 (with the exception of QuadrigaCX’s “inadvertent” sending of 104 bitcoin from its hot wallets to these addresses after filing for creditor protection). Only one, the sixth on the list above, has seen recent activity; its last transaction was December 3, 2018, an output that would empty the wallet completely six days before Gerald Cotten’s death. In total, 2,776 BTC ($14 million CAD at the time of writing) passed through the cold wallets. Even factoring in bitcoin’s price at its all time high, these 2,776 bitcoin would only account for just over $74 million CAD — just under a third of the $250 million the exchange owes its clients.
The monitor indicates in the report that QuadrigaCX employees were unable to explain why the cold wallets have been empty for so long. Typically, exchanges keep the vast majority (~90-95 percent) of funds in cold wallets, and Robertson said in her affidavit that, to her knowledge, Cotten stored the majority of user funds in these cold wallets.
In the same affidavit, Robertson attested that “most of [QuadrigaCX’s] business … was being conducted by Gerry wherever he and his computer were located.”
Since the monitor can’t find funds in QuadrigaCX’s cold wallets, it’s looking elsewhere, both internally and externally, at other exchanges, to be exact.
“During interviews with the Applicants’ representatives, the Monitor was advised of fourteen (14) user accounts that may have been created outside the normal process by Quadriga,” the report reads.
These “internally created” accounts were registered under various aliases “without a corresponding customer and [were] used to trade on the Quadriga platform.” Deposits related to these accounts “may have been artificially created and subsequently used for trading on the Quadriga platform,” a practice that could amount to fraud.
The report continues to state that the monitor discovered “significant volume[s] of transaction activity” from each account, including withdrawals to addresses that do not belong to QuadrigaCX.
Looking into QuadrigaCX’s ties to other exchanges, EY identified accounts at four other exchanges which were under the auspice of either Cotten or QuadrigaCX. Only one of these exchanges has responded to the monitor’s inquiry into Cotten/QuadrigaCX’s account activity, and the information matched with data QuadrigaCX provided relating to the accounts.
The report does not disclose which exchanges were used, though the findings corroborate research James Edwards of cryptocurrency research site Zerononcense has published. In his latest transaction analysis, Edwards claims that QuadrigaCX funneled ether funds through various exchanges; namely, Kraken, Poloniex, Binance and Bitfinex.
A step in the right direction, the monitor indicated that QuadrigaCX’s exchange processes (both its own and with others) are in the preliminary stages of investigation.
To get a full picture of the exchange’s activity, it has placed a request with Amazon Web Services, QuadrigaCX’s web provider, to view data related to the exchange’s platform. The accounts are registered as belonging to Gerald Cotten and Jose Reyes, the head of Billerfly, one of QuadrigaCX’s payment processors, who became further entrenched in the exchange’s affairs when his bank account was implicated in drafts representing customer funds. Amazon refused to disclose this information even with Robertson’s power as executor of Cotten’s estate.
“The Monitor believes it is imperative that a copy of the Quadriga Platform Data is backed up and secured with the Monitor as soon as possible. The Platform Data will assist the Monitor’s ongoing investigation into Quadriga’s business, affairs and potential assets that may be recoverable for the benefit of the Applicants’ stakeholders,” the report reads.
Some Good News
With all the digging the monitor has done, they’ve only unearthed enough dirt to find even more dirt to sift through before it can get to the bottom of this case. That said, the report included a handful of positive developments, as well.
For instance, EY has secured some $25 million in bank drafts that were formerly held in financial limbo between QuadrigaCX’s motley of payment processors and a bank account overseen by the monitor. These funds are now in a disbursement account with the Royal Bank of Canada.
Another $245,000 from an account at the Canadian credit union, which was frozen in 2017, has been transferred to the account, and the monitor is waiting for QuadrigaCX’s legal counsel to endorse another $5 million over to the exchange, the last portion of bank drafts believed to be related to customer funds.
The monitor also retrieved “minimal cryptocurrency” from one of the exchanges on which Cotten/QuadrigaCX held an account. In addition to this, Robertson has allegedly transferred all of Cotten’s personal cryptocurrency holdings to aid in client reimbursement.
A Committee of Affected Users is underway, the report reveals, but it is not set in stone yet. It also argues that QuadrigaCX’s plea for a stay in proceedings of 45 days is amenable, given that the company needs to appoint a Chief Restructuring Officer (CRO) to properly handle business matters as court proceedings develop.
“Subject to the comments above regarding the appointment of the CRO and the extension of the stay of proceedings, the Monitor supports the relief sought by the Applicants … The Monitor further requests that the Court grant relief authorizing and directing [Amazon Web Services (AWS)] to provide access to the AWS Account to the Monitor and the Applicants,” the report concludes.
Following the recent influx of selling pressure that sent Bitcoin’s price spiraling below its previously established support level at $3,800, the cryptocurrency’s bulls were able to garner an influx of buying pressure that sent BTC back above $3,800 and towards $3,900.It now appears that Bitcoin is facing relative levels of resistance at $3,900, and analysts believe that this is a key price level for BTC to break decisively above in order for the crypto to maintain its bullish momentum.Bitcoin Price Surges Nearly 4%, But Faces Strong Resistance at $3,900 At the time of writing, Bitcoin is trading up nearly 4% at its current price of $3,900. This past Sunday, BTC dropped below its previously established support level at $3,800 and fell to lows of $3,700 before trading sideways for a couple of days before surging this morning.Although the bull’s ability to keep BTC’s price in the upper-$3,000 region is positive for the cryptocurrency, it has struggled to break decisively above $4,000, and may be unable to break above this level in the near-term if it is unable to surge above $3,900.UB, a popular cryptocurrency analyst on Twitter, spoke about the importance of the $3,900 level in a recent tweet, explaining that BTC needs to push above $3,900-3,940 in order for a decisive break above $4,000 to be in the cards.“$BTC – So far so good. Bitcoin is currently testing the first area of resistance (3830) after popping up a bit. The real test will be at 3900-3940. The reaction at those levels will be very important for either bullish or bearish arguments for the next few days.”$BTC – So far so good.Bitcoin is currently testing the first area of resistance (3830) after popping up a bit.The real test will be at 3900-3940. The reaction at those levels will be very important for either bullish or bearish arguments for the next few days. #Bitcoin pic.twitter.com/sobKy85JBd— UB (@CryptoUB) March 5, 2019If Bitcoin continues to struggle to break above $4,000, it may be plausible that the crypto falls back to its 2018 lows of $3,200 before finding more buying pressure.Analyst: Bitcoin Finding Strong Support at Top of Previous Pennant Resistance Bitcoin’s latest move up may be due to it establishing the top of its previous pennant resistance as a strong level of support.Crypto Rand, a popular cryptocurrency analyst on Twitter, recently noted that long positions in Bitcoin currently look far more attractive than short positions, as BTC has continued to respect the top of the old pennant resistance as support and has found strong horizontal support around $3,800.“Not trading it for now but way more interested on long setups. Horrible spot to short #Bitcoin. The old pennant resistance still playing as support. Confluence of the downtrend channel with the horizontal support and 0.786 FIB.”Not trading it for now but way more interested on long setups. Horrible spot to short #Bitcoin.The old pennant resistance still playing as support. Confluence of the downtrend channel with the horizontal support and 0,786 FIB.More info and analysis: https://t.co/WV7FKTZRa0 pic.twitter.com/7b3rh1xDY5— Crypto Rand (@crypto_rand) March 5, 2019Traders and analysts alike will be closely watching to see if Bitcoin is able to decisively move above the low-$3,900 region, as if it does it may retest $4,200, which is a recently established level of strong resistance.Featured image from Shutterstock.
Litecoin price surge, up 14.8 percentVenezuela approves Bitcoin and Litecoin as remittance agentsVolumes explode as Litecoin (LTC) likely to close above $50It is only through Remesas, which has the support of the Venezuelan government and under its regulators, that users can send funds using Bitcoin and Litecoin. Perhaps, this move (not trusted by many) will further help pump Litecoin, up 14.8 percent in the last day.Litecoin Price AnalysisFundamentalsEven though Litecoin (LTC)–like all coins may be recovering, the decision made by the Litecoin Foundation that they will be complementing Bitcoin (as its silver) was strategic and is now paying dividends. Trading at around one percent of Bitcoin’s value, Litecoin is proving to be a cheap cross border alternative that governments like Venezuela are recognizing. Besides, it is available in almost all exchanges across the world meaning it is liquid and suitable for merchants.Aside from being a medium of exchange—and gravitating towards privacy, Litecoin (LTC) and Bitcoin will be the two coins that users can use as agents of remittance. The Venezuelan backed crypto platform, Remesas only accept Bitcoin and Litecoin.It will run on the Patria under the direct oversight of Superintendency of Cryptoassets and Related Activities (SUNACRIP), the country’s regulator.“Remesas is a service of the Patria Platform that allows you to send remittances to Venezuela in Cryptocurrencies. The resources sent will be available in Sovereign Bolivars in the Monedero Patria as soon as the transfer is confirmed. The cryptocurrencies that can be used to send [remittances] are Bitcoin and Litecoin.”Candlestick ArrangementsTrailing Binance Coin (BNB), Litecoin is up 14.8 percent in the last day. As a result of this upswing, our previous LTC/USD trade plans are valid. We expect this pump to continue throughout the NY Session and it is likely that Litecoin will for the first time this year close above $50.The resistance level is critical. Because it is previous support, any close above this mark will usher bulls aiming at $70. After that happens, the bar breakout pattern of mid-Nov 2018—as mentioned in our last analysis–becomes invalid.If not and bears reject attempts of higher highs, then we shall have a classic bear trend resumption phase as the second stage, the retest comes to an end. All the same, we are optimistic. Our first modest target is $70.Technical IndicatorsAll we need is a mirror of Feb 8 bull bar. Not only does it have transaction volumes—832k versus 202k average, but it is wide-ranging. After today’s close we shall know the exact participation level but from the look, volumes are above average. If tomorrow’s bar complements today’s price action, then accompanying volumes must be above 220k averages. It will be perfect if volumes surpass 832k of Feb 8 as bulls cement their position.
TrustToken has announced a new partnership that it says will allow traders using its regulated stablecoin, TrueUSD (TUSD), to have a “real-time” view of the U.S. dollars backing the token.
For the effort, the San Francisco-based firm has teamed up with accounting firm Armanino, which has developed a dashboard that provides an up-to-date, third-party view of TUSD in circulation and their related collateralized fiat funds.
To do that, Armanino connects with the escrow bank accounts holding TrustToken’s U.S. dollar collateral, as well as running ethereum nodes to monitor TUSD supply. With the new service, the “transparency” time frame for this information drops “from months to minutes,” said TrustToken in an announcement on Tuesday.
“This sets a new standard not only for stablecoins, but for all tokenized assets in the future,” said Rafael Cosman, TrustToken co-founder and head of engineering and product. “With real-time confirmation of funds provided by one of the world’s leading accounting firms, traders will know at all times that their tokens are backed by real-world value.”
Noah Buxton, director of risk assurance and advisory at Armanino, added that his firm believes that “continuous assurance and audit is no longer a far-off future, but rather an imminent reality.”
The dashboard is slated for launch “by early April,” TrustToken said, and will be open for anyone to access via Armanino’s website.
In the same announcement, TrustToken said it has reduced the minimum TrueUSD purchase and redemption amount to $1,000.
It’s also launched a “1-click redemption process,” allowing verified users to send TUSD tokens to a “personal redemption address” from any wallet to have the same amount in U.S. dollars automatically wired to their bank account. The 1-click redemptions can also be automated for trading desks, TrustToken said.
The news comes several months after another stablecoin launched offering a real-time view of its dollar backing. Stably announced in November that its StableUSD (USDS) token was backed by USD held in Prime Trust escrow accounts and that these holding were visible “via a live feed from Prime Trust’s API.”
The issue of transparency of stablecoin collateral has been highlighted by the controversies surrounding Tether’s popular USDT token. The firm has not provided a full independent audit and has occasionally slipped from its dollar peg. However, a December Bloomberg report suggested the company had had sufficient holdings to back the total of USDT tokens in circulation, at least for a specific period.
Dollars under a magnifying glass image via Shutterstock
After a week of community discontent, cryptocurrency exchange Coinbase has decided to sever its business relationship with Neutrino employees who previously worked at the notorious Italian malware/software provider Hacking Team.
Blaming “a gap in [Coinbase’s] diligence process,” CEO Brian Armstrong writes in a Medium post that Coinbase “did not properly evaluate everything from the perspective of our mission and values as a crypto company.”
“We took some time to dig further into this over the past week, and together with the Neutrino team have come to an agreement: those who previously worked at Hacking Team (despite the fact that they have no current affiliation with Hacking Team), will transition out of Coinbase. This was not an easy decision, but their prior work does present a conflict with our mission. We are thankful to the Neutrino team for engaging with us on this outcome.”
Last week, Neutrino’s link to Hacking Team came to light thanks to Twitter commentators like Block Digest’s “Janine.” At least three individuals in Neutrino’s core team (CEO Giancarlo Russo, CRO Marco Valleri and CTO Alberto Ornaghi) had been principal employees of Hacking Team, as well as Luca Guerre, an intern-turned-software-engineer at the company.
Coinbase did not disclose which team members would be let go, so there’s no information to indicate how many other Neutrino employees might be affected by the severance. Armstrong also offered no timeline in his post for when these departures would take place.
Disbanded in 2016, Hacking Team made headlines during its business’ zenith for selling surveillance malware to authoritarian governments. Their software’s use has been implicated in inumerable privacy and human rights abuses, including the death and imprisonment of journalists and civil rights activists.
News of Hacking Team’s abuses spread like wildfire through the community, in part stoked by tenacious media coverage and social media backlash, culminating in a #DeleteCoinbase campaign.
And apparently, this heat was enough for Coinbase to decide to dissolve its connections with the people previously associated with Hacking Team.
Previously, the exchange had defended its acquisition in a blanket statement sent to the press. Coinbase stated that it “does not condone nor will it defend the actions of Hacking Team,” but that it was “important for [it] to bring [blockchain analysis services] in-house to fully control and protect our customers’ data, and Neutrino’s technology was the best we encountered in the space to achieve this goal.”
In his post, Armstrong mentions that Neutrino was also acquired because their old providers didn’t support all the assets [the exchange] wanted to have on [its] platform,” so it “examined the players, found that Neutrino had some of the best technology in this area, and decided to acquire them.”